The Capital Account Is Divided into Three Subcategories: Direct Investment

question 18

Multiple Choice

The capital account is divided into three subcategories: direct investment, portfolio investment, and other investment. Direct investment involves

• A)acquisitions of controlling interests in foreign businesses.
• B)investments in foreign stocks and bonds that do not involve acquisitions of control.
• C)bank deposits, currency investment, trade credit, and the like.
• D)all of the above

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Definitions:

Value Chain

A model that describes the full range of activities needed to create a product or service, from conception to delivery and beyond.

Human Resource

The department within an organization that deals with the recruitment, management, and direction of people who work in the organization.

Service Shop

A business that provides specialized professional or technical services, often involving repair or maintenance.

Production/Delivery

The process and logistics involved in creating a product and making it available to the end customer, including manufacturing and shipping stages.